Why Bed Bath & Beyond stock just crashed By Investing.com

© Reuters

By Senad Karaahmetovic

Bed Bath & Beyond (NASDAQ:) stock has moved sharply lower in pre-open Thursday after the company presented preliminary net sales for the third quarter.

BBBY said preliminary Q3 sales were $1.26 billion, missing the $1.4B consensus. The preliminary net loss is $385.8 million, worse than the $276.4M reported for the year-ago period.

“Despite more productive merchandise plans and improved execution, our financial performance was negatively impacted by inventory constraints as we partnered with our suppliers to navigate both micro- and macro-economic challenges. Reduced credit limits resulted in lower levels of in-stock presentation within the assortments that our customers expect,” said Sue Gove, President & CEO of Bed Bath & Beyond.

Moreover, Bed Bath & Beyond said it “has concluded that there is substantial doubt about the Company’s ability to continue as a going concern.”

“The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the US Bankruptcy Code. These measures may not be successful,” it further added in a press release.

Bed Bath & Beyond stock closed at $2.41 yesterday. As of 08:22 ET (13:22 GMT), BBBY stock is down 17% premarket.

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